GOVERNMENT OF PUNJAB

DEPARTMENT OF SCIENCE, TECHNOLOGY, ENVIRONMENT AND NON-

CONVENTIONAL ENERGY

Notification

The 26th DECEMBER, 2012

No. 10/174/2012/STE(3)/4725 -The Governor of Punjab is pleased to

formulate a 'New and Renewable Sources of Energy (NRSE) Policy – 2012’, to
develop and promote new and renewable sources of energy based technologies
and energy conservation measures as well as providing financial & fiscal
assistance, thereby addressing the problems arising from depletion of
conventional sources of energy and environment pollution. This policy shall
replace and supersede the previous policy notified vide No. 10/106/2006-STE
(1)/5390 dt. 24th November, 2006, unless specifically stated otherwise
hereunder.The Policy would be effective from the date of its notification in the
official gazette of Punjab Government and shall remain in operation till the
Government notifies the new policy. For giving effect to this policy, necessary
amendments in variouspolicies, rules & regulations, wherever necessary, shall
be expeditiously undertaken by the concerned departments.

1. OBJECTIVES

1.1 Punjab has considerable potential in NRSE sector which is being

harnessed. With a view to maximize the utilization of these resources;
this policy aims to achieve the following objectives:

 To maximise and improve the share of new and renewable sources of

energy to 10% of the total installed power capacity in the state by
2022. NRSE sector wise details are mentioned separately.

 To promote renewable energy initiatives for meeting energy / lighting

needs in rural areas and supplementing energy needs in urban,
industrial and commercial sectors.

1.2 Further, in order to achieve the aforesaid objectives, the following shall
bethe major strategic initiatives :-

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  To create conducive conditions for attracting private sector investment in
NRSE projects along with broader participation by public
community/civil society.

 To provide decentralized renewable energy for agriculture, industry,

commercial and household sector particularly in rural areas thereby
improving the quality of power and reducing transmission & distribution
losses.

 To give support to specific NRSE projects and schemes for generating

energy and conserving energy through energy efficiency.

 To support research and development, demonstration and

commercialization of new and emerging technologies in renewable energy
sector such as fuel cell, hydrogen and chemical energy, alternate fuels
for transportation etc.

2. NRSE THRUST AREAS

2.1 NRSE are defined as Small hydro upto 25MW, Biomass including Co-
generation, Solar Photovoltaic, Solar Thermal, Urban, Municipal and
Industrial solid / liquid Wastes, Biomethanation, Gasification, Wind and
New NRSE sources like fuel cells/Hydrogen/Biofuels etc. of any capacity.
This form of energy would mitigate carbon dioxide emissions and combat
climate change. Given the geographical location of the State of Punjab,
and its access to various sources of energy, the State would promote
investment through private/public sector participation in the following
areas:

2.2 Small/ Mini / Micro Hydel:

By virtue of its topographic location and agriculture base, the State has an
extensive irrigation canal network with estimated total potential of over
250 MW. The State Government is committed to exploit the total potential
by the year 2022.

2.3 Biomass/Agro residue:

Punjab is primarily an agrarian economy and holds tremendous potential
for energy generation from agro- residues like Cotton stalks, Paddy Straw,

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 Paddy Husk etc. It is proposed to achieve a target of 600 MW power
generation in this sector by 2022.
Also the existing industries like Sugar, Paper and others have still an
estimated unexploited potential of about 500MW of co-generation. Details
are placed at Annexure-1A.

2.4 Urban, Municipal and Industrial Liquid / Solid Waste:

At present about 5000 Metric Tons of Municipal, Urban and Industrial

solid waste is being produced every day in the urban areas of the State.
Introducing scientific processing and treatment of this quantity of waste
would add to power generation besides being environmentally benign.
Such projects shall be supported on different waste streams in the State.
It is proposed to achieve a target of 50 MW power generation in this sector
by 2022.

2.5 Solar Power generation:

Punjab is endowed with vast potential of solar energy with over 300 days
of sunshine in a year with insolation level varying between 4-7 Kw/sq.mtr.
Solar Power Generation capacity is targeted at 1000MW by 2022.With
these projects located closer to the load in distribution/transmission
network, distribution losses will be reduced considerably and voltage drop
at peak day time load will be minimized. Details are placed at
Annexure-1B.

2.6 Wind Power :

Wind power potential is low in the State as the necessary wind speedis
not there. The state will support programmes to set up innovative
technology based wind turbines.

2.7 Upcoming NRSE technology based projects:

Lot of research is going on around the world for efficient and economic
transformation of available renewable sources of energy for usage by the
society. Fuel cells, Hydrogen energy, geothermal energy, Bio fuels, Bio-
ethanol etc. have great potential of becoming commercial RE technologies.
Pilot, demonstration & commercial projects in these upcoming NRSE

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 technology sector shall be encouraged to be set up in the state by PEDA.
In addition PEDA shall take up R&D projects in the Biomass especially
paddy straw combustion for power generation through Rankin
cycle/gasification in pilot mode.GIS mapping shall be carried out for land,
biomass and solar radiation and made available to project developers for
project facilitation. PEDA shall also carry out Power
transmission/distribution grid network study on 132/66 KV substations
for assessing the location suitability of RE projects for max grid/power
benefits in terms of voltage improvement, reduction in
transmission/distribution losses, evacuation infrastructure/support and
decentralized power supply.
2.8 Promotion of Green Technologies:
PEDA shall facilitate and promote the green technologies in the state for
furthering the economic and industrial development. Technologies such
as Electric Vehicles, Compressed Biogas for Transportation, Green battery
technologies, energy efficient, carbon neutral building technologies shall
be promoted.
3. ENERGY CONSERVATION
Conservation of energy in domestic, commercial, agriculture,
transportation and industrial sectors can lead to major savings in terms
of reduced energy consumption thereby leading to bridge the energy
demand supply gap in the state. There is a potential of saving of energy
upto 20-25% in different sectors of the economy in the state. Energy
Conservation Measures shall be implemented and enforced in the state in
accordance with the provisions contained in the Energy Conservation Act-
2001 by PEDA, in consultation with Bureau of Energy Efficiency, Ministry
of Power, Govt. of India.
Punjab has issued notifications for mandatory use of CFL, Roof Top Solar
Water Heating Systems, BIS approved & minimum BEE 4 Star Labeled
pump sets and promotion of energy efficient buildings. Demo projects
have been initiated for development of energy efficiency in municipal
street lighting, water pumping & existing Govt. buildings. Use of BEE Star
Labeled electrical appliances in all government organizations has also
been mandated.

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 Energy Conservation Building Code (ECBC) has been launched by Bureau
of Energy Efficiency, MOP, GOI on 27th May, 2007 to be implemented on
voluntarily basis. The code is applicable to buildings / building complexes
that have a connected load / contract demand of 100 kW / 120 KVA or
moreand is being amended as the Punjab Energy Conservation Building
Code (PECBC) to be applicable in the state of Punjab which falls in the
composite climate zone within the provision of the EC Act-2001. Three
types of Green building rating are also available i.e. Leadership in Energy
and Environmental Design (LEED), Green Rating for Integrated Habitat
Assessment (GRIHA) & BEE Star Rating of Buildings.
An energy conservation action plan team has been constituted under the
chairmanship of Principal Secretary, Science & Technology, Environment
and NCES which reviews implementation of various energy conservation
programmes in the State.

4. FACILITATION OF NRSE PROJECTS

4.1 Govt. of Punjab shall provide assistance for setting up of NRSE projects in
the state. In addition the Govt. shall also provide fiscal and technical
assistance to encourage setting up of these projects.

4.2 NODAL AGENCY: Punjab Energy Development Agency (PEDA) is the

nodal agency for the implementation of the NRSE Policy on behalf of the
Govt. of Punjab. PEDA will be responsible for laying down the procedure
for inviting of proposals from NRSE project developers i.e. preparing bid
documents, managing the bid process, evaluation of project proposals and
its award to successful bidder, project approvals and scrutiny of DPR,
project implementation and monitoring.

All NRSE project developers in the state (including Captive, Cogeneration,

IPP and merchant power developers) will be required to submit their
project proposals with PEDA for approval and validation for sale of power
in or outside the state.

4.3 SINGLE WINDOW CLEARANCE: Setting up of NRSE projects involves

sanctions/clearances from a number of Government
Agencies/Departments. The State Government shall provide the

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 clearances in a time bound manner through a single window mechanism
within a period of 60 days after the submission of complete application
along with necessary enclosures, fees/charges and DPR. The Detailed
procedure for according approvals/clearances is placed at Annexure-II.

4.4 FISCAL AND TECHNICAL ASSISTANCE: These have been detailed out in
annexure on “FISCAL AND TECHNICAL ASSISTANCE” attached at
Annexure-III.

4.5 ALLOTMENT OF PROJECTS: All NRSE Projects including Small Hydro

Projects upto 25 MW capacity, Biomass IPP, MW scale Solar PV & Solar
Thermal Projects, Waste to energy projects under IPP mode and MW scale
roof top solar PV for net metering/sale of power shall be allocated through
competitive bidding by PEDA. The project developers shall sell all the
energy generated from the projects to PSPCL/Licensee at the tariff arrived
after competitive bidding. Financial eligibility Criteria for NRSE projects to
be allocated through competitive bidding is given at Annexure-IV.

Projects under REC mechanism may be allocated through competitive

bidding based on the percentage share of REC price. For any project to be
set up under REC mechanism, the first right to purchase power will lie
with PSPCL/LICENSEE at APPC tariff . On their refusal, the bidding will
envisage sale of power in open access.

Self-identified projects in the field of Small Hydro, ,waste to energy based

on cattle dung/ vegetable waste / poultry waste projects& Biomass Power
Projects Based on Energy Plantation & Rice Mill Integrated shall be
allocated on the recommendation of the project allocation committee on
case to case basis. Surplus Power from NRSE Co-generation Projects shall
be procured by signing of Implementation Agreement (IA).In case of
upcoming NRSE technology demonstration projects, the MOU route may
be considered.
All NRSE projects of capacity upto 1 MW shall be allocated on the
recommendation of PEDA, whereas all NRSE projects of capacity more
than 1 MW shall be allocated on the recommendation of the Project
Allotment Committee consisting of following members:-

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 1. Principal Secretary to Government of Punjab, - Chairman
Department of Science, Technology,
Environment and Non-Conventional Energy.
2. Principal Secretary to Government of Punjab, - Member
Department of Power

3. Principal Secretary to Government of Punjab, - Member

Department of Finance
4. Chief Executive, Punjab Energy Development - Member
Agency.
5. Chairman cum MD, Punjab State Power - Member
Corporation Ltd.

6. Director, PEDA. - Member

7. Jt. Director (Projects), PEDA - Convener

The Committee shall examine/evaluate the techno-commercial conditions

in the bidding documents for projects to be allocated through competitive
bidding/detailed project report for project proposals under MOU route &
shall grant approval to the offers/project proposal after considering the
financial capability, technical capability, status of technical collaboration
with proven technology suppliers, status of land identification and its
availability etc.

5. RE Tariff

The NRSE projects shall be provided tariff for sale of power as per PSERC
RE tariff orders and shall be governed by RE regulations.

5.1 The preferential tariff of sale of power to the PSPCL/licensee from NRSE
projects to be set up under this Policy shall be as notified by the
PSERCfor the financial year in which PPA is signed but shall be revised as
per tariff notified for the financial year in which the scheduled date of
commissioning of the project falls except in case of Solar PV and Solar
Thermal power projects in which the tariff applicability is for two years
and three years respectively inclusive of the Financial year in which PPA
is signed in accordance with the CERC RE regulations. Likewise, in case
of NRSEprojects allocated through tariff based competitive bidding /
discount on preferential tariff, the tariff arrived after competitive bidding /

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 discounted tariff shall be applicable in accordance with CERC RE
regulations.

5.2 The developer in technologies/resources where tariff has not been notified
by the PSERC shall be required to submit petition to the Commission for
determination of tariff.

5.3 To maximize the availability of NRSE Power for PSPCL/LICENSEE and to

meet its RPO, NRSE based captive / co-gen power projects setup and
commissioned during the period of NRSE Policy-2006 having surplus
power and not registered with PEDA so far or not signed the
Implementation agreement will be allowed to get themselves registered
with PEDA and to sign agreement to facilitate power purchase by
PSPCL/LICENSEE. PSPCL will sign only long term PPA with such
registered projects on the last escalated tariff of NRSE Policy-2006
payable for FY 2011-12.

5.4 As per Power Purchase Agreements signed with PSEB (now PSPCL) by IPP
Biomass/Biogas power projects allocated by PEDA & set-up during the
period of NRSE Policy 2001,the tariff has become stagnant at Rs. 3.49 per
unit since2006. The generic tariff as per RE tariff regulation 2012
notified by CERC and adopted by PSERC for biomass power
projects allows 5% annual rise in the fuel cost for the tariff period from
the date of commissioning. Therefore to enable these projects to continue
generation, the tariff for these projects will be re-determined by PSERC
for the remaining period of PPA.
5.5 No parallel operation charges shall be levied on NRSE projects.

6. IMPLEMENTATION OF PROJECTS

6.1 After issuing of all applicable statutory clearances the Producer shall
enter into an Implementation Agreement with PEDA within a period of 15
days from the date of grant of applicable statutory clearances for the
project and also notification of tariff if applicable. The project developer
shall be required to submit a performance security in the shape of Bank
Guarantee of Rs 20lacs per MW in case of non-solar projects and Rs. 40

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 Lacs per MW in case of solar projects before signing of implementation
agreement or as stipulated in the bid document. The performance security
shall be forfeited by PEDA for delays attributable to the developer as given
in the allotment letter/implementation agreement/bid document.

6.2 The implementation agreement shall contain the major provisions for
project allocation, land, location, power evacuation, project completion
schedule ,time period, project life, tariff, tariff period, PPA period, various
fiscal and technical assistance granted to the projects under NRSE policy,
penalty provisions in case of delay, arbitration etc.
6.3 PSPCL/LICENSEE shall sign a Power Purchase Agreement within 30
days from the date of order issued by Commission in case tariff approval
is to be given by PSERC. In case of competitively arrived
tariff/preferential tariff and APPC, the PPA shall be signed within 30
days from the date of signing Implementation agreement by PEDA.
6.4 Scheduling: The NRSE projects operating in synchronization with PSPCL
/PSTCL system and selling /wheeling power shall be required to adhere to
scheduling as per applicable regulations of the Appropriate Commission.
6.5 Banking: The banking facility for the power generated shall be allowed for
a period of one year by the PSPCL/LICENSEE/PSTCL. However, the
energy banked during non-paddy season and non peak hours will not be
allowed to be drawn during paddy season and peak hours respectively.
6.6 Injection of NRSE power: PSPCL/LICENSEE/PSTCL will accept the
injection of energy in full even during sustained high frequency hours to
ensure full utilization of non-conventional energy resources and merit
order shall not be applicable.
6.7 Energy Payment: PSPCL/LICENSEE will clear dues within 60 days.
However if the Developer requests for payment in 30 days or against
Letter of Credit / payment in 7 days, rebate of 1% or 2% respectively, as
the case may be, will be admissible to PSPCL/LICENSEE. Delay in
payments will attract interest as per PSERC/CERC regulations.
6.8 Letter Of Credit: PSPCL/LICENSEE/PSTCL will provide facility of
irrevocable and revolving, Letter of Credit issued by any nationalized
bank. The amount of the Letter of Credit shall be equal to the bill amount

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 of one month on the basis of average of last three months. All
expenditures on Letter of Credit shall be borne by the power producers.
6.9 All project developers shall be required to submit monthly statement for
verification of usage of fuel as detailed out in RE regulations and orders
for determination of generic tariff issued by CERC. In addition, monthly
information with regard to other parameter like energy generated, revenue
earned, power factor and plant load factor achieved, reasons for non-
achievement of full generation etc as directed by PEDA shall also be
submitted so as to maintain and update data bank on NRSE generation in
the state and also for the purpose of monitoring generation under RPO
regulations.

7. AMENDMENTS/ RELAXATION/ INTERPRETATION

OF PROVISIONS OF THE POLICY

Government of Punjab, Department of Science, Technology, Environment and

Non-Conventional Energy shall take up cases for amendment/ relaxation/
addition/ interpretation of provisions under this policy.

Karan A. Singh
Principal Secretary to Govt. of Punjab,

Department of Science, Technology,

Environment & Non-Conventional Energy

No. 10/174/2012/STE(3)/4726 Dated: 26th Dec,2012

A copy is forwarded to the Controller, Printing and Stationary Punjab, Chandigarh for
publishing the above Notification in Punjab Government Gazette and supply 50 copies thereof
for official use.

Special Secretary

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A copy is forwarded to the following for information and necessary action

1. Financial Commissioner, Excise & Taxation, Punjab.

2. Financial Commissioner, Revenue & Rehabilitation, Punjab.
3. Financial Commissioner, Forests & Wildlife Preservation, Punjab.
4. Principal Secretary to Govt. Of Punjab, Deptt. of Industries & Commerce.
5. Principal Secretary to Govt. Of Punjab, Deptt. of Local Government.
6. Principal Secretary to Govt. of Punjab Deptt. of Finance.
7. Principal Secretary to Govt. of Punjab Deptt. of Power.
8. Principal Secretary to Govt. of Punjab Deptt. of Irrigation.
9. Principal Secretary to Govt. of Punjab Deptt. of Housing & Urban
Development.
10. The Chairman cum MD, Punjab State Power Corporation Limited.
11. The Chairman cum MD, Punjab State Transmission Corporation Limited.
12. The Secretary, Punjab State Electricity Regulatory Commission.
13. The Chairman, Punjab Pollution Control Board.
14. The Chief Executive, Punjab Energy Development Agency.

Special Secretary

To,
1. Financial Commissioner, Excise & Taxation, Punjab.
2. Financial Commissioner, Revenue & Rehabilitation, Punjab.
3. Financial Commissioner, Forests & Wildlife Preservation, Punjab.
4. Principal Secretary to Govt. Of Punjab, Deptt. of Industries & Commerce.
5. Principal Secretary to Govt. Of Punjab, Deptt. of Local Government.
6. Principal Secretary to Govt. of Punjab Deptt. of Finance.
7. Principal Secretary to Govt. of Punjab Deptt. of Power.
8. Principal Secretary to Govt. of Punjab Deptt. of Irrigation.
9. Principal Secretary to Govt. of Punjab Deptt. of Housing & Urban
Development.
10. The Chairman cum MD, Punjab State Power Corporation Limited.
11. The Chairman cum MD, Punjab State Transmission Corporation Limited.
12. The Secretary, Punjab State Electricity Regulatory Commission.
13. The Chairman, Punjab Pollution Control Board.
14. The Chief Executive, Punjab Energy Development Agency.

I.D. No. 10/174/2012/STE(3)/4727 Dated: 26th Dec,2012

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 ANNEXURE-I A

BIOMASS POWER GENERATION

a) Biomass IPP Project: Punjab agriculture is dominated by wheat paddy

cycle producing more than 10 million tons of paddy straw. Unlike the past,
where these were burnt in the fields, crop residue would now contribute to
farmer’s income and also lead to power generation. It is estimated that huge
quantities of surplus agro residues (including rice straw) and agro
industrial/processing waste is produced annually which can generate de-
centralized power of more than 600 MW. The State Government is committed
to support and facilitate harnessing the total potential by the year 2022.

b) Energy Plantations based small capacity biomass plants: Punjab has

some tracts of degraded/waste lands and non-forest areas. This could be used
for raising dedicated plantations of fast growing high yielding plant species
such as Bambusa balcooa, melia dubia etc. Lantana which is available in
forest areas shall be encouraged for use as biomass in such projects. These
small capacity projects up to 2 MW can be set up in technology neutral mode
i.e. Rankin cycle, Gasification cycle or Otto cycle.

c) Rice mills integrated small capacity Biomass Plants: Presently very

low pressure non-efficient boilers, based on obsolete technologies are used in
rice mills for parboiling/process steam requirements. There is untapped
potential of surplus power generation which can be realized by promoting the
setting up of small high pressure boilers based biomass plants with higher
plant efficiency. Rice mills integrated small capacity Biomass Plants in IPP
mode up to 5 MW capacity shall be allowed to be setup with due approval of
PEDA with the condition that at least 25% of the biomass used has to be rice
straw. A rice mill of 4 TPH cap. shall be allowed to set up a 1 MW cap. Biomass
plant and rice mill of 20 TPH and above shall be allowed to set up a 5MW cap.
Biomass plant.These small capacity projects can be set up in technology
neutral mode i.e. Rankin cycle, Gasification cycle or Otto cycle& will not
infringe upon the command area of the biomass IPP projects.

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d) Co-generation: The State of Punjab has an established industrial base
which is expanding , Co-gen plants have proved to be highly beneficial for the
industry. The sugar, paper, fertilizer, chemical, textile and other industries are
still having an estimated combined potential of 500 MW, which is still to be
realized. It is proposed to encourage the industry to set up co-gen plants and
achieve capacity addition of 500 MW by 2022. These projects shall meet the
qualifying criteria under topping cycle as per CERC regulations.

Cogeneration projects under bottoming cycle or based on back pressure

turbines and tri-generation projects utilizing the waste heat for
heating/cooling/chilling purposes shall also be encouraged.

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 ANNEXURE-1B
SOLAR POWER GENERATION
Solar energy would mitigate carbon dioxide emissions and combat climate
change.
Rooftop projects shall be promoted in all sectors including Govt. buildings in
order to enhance the share of solar power in the state. PEDA will implement
MNRE,GOI scheme which provides 30% capital subsidy for Stand alone
rooftop SPV systems. PEDA shall also undertake a solar rooftop programme in
the state for the domestic, industrial and commercial sectors through Grid
interconnectivity by deploying net metering / sale of power to
PSPCL/LICENSEE.

PEDA shall facilitate bundled power scheme of MNRE, IREDA and NVVN
allocated MW scale solar power projects under JNNSM.Solar IPP projects (MW
Scale) shall be promoted under this policy.

REC based Solar projects will be encouraged where the Solar PV and Solar
Thermal IPP projects will be bid out competitively based on the share of REC
revenue.The power can be sold on APPC/Open Access and proponent can
claim REC for trading in power exchange . However, PSPCL/LICENSEE shall
retain the first right of refusal to such NRSE power and in case of refusal, the
developer can sell power under open access.

Punjab State will also promote decentralized and off-grid solar applications,
including hybrid system as per guidelines issued by MNRE to meet various
electrical and thermal energy requirements. Some of the major applications of
solar thermal technologies include solar water heaters, solar cooling systems,
air drying, steam cooking, power generation, sterling engine. The off grid
photovoltaic applications include solar PV home lighting, police stations
communication and lighting, Small powered looms, solar inverters, solar PV
pumps, powering computers in schools, Small milk chilling plants,
refrigeration for medicine in primary health centers and Hybrid systems for
Powering telecom towers etc. The off-grid solar applications shall be promoted
for replacement of diesel based generators sets. Guidelines and incentives
issued by MNRE (www.mnre.gov.in) from time to time shall be followed in
State for promotion of decentralized and off-grid solar applications.

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 ANNEXURE-II

PROCEDURE FOR PROJECT CLEARANCE

(1) The project developers who are allocated projects by PEDA shall be issued
a detailed allocation letter, while the developers for upcoming technology
projects shall sign an MOU with PEDA.The parties selected to set up
projects on the basis of competitive bidding or desirous of setting up NRSE
projects under this policy will be required to submit a comprehensive
proposal to PEDA for appraisal.

(2) The developer shall submit a Detailed Project Report (DPR) within two
months of issue of allocation letter/signing of MOU. The DPR should
contain the complete details of power generation technology, plant
technical details and parameters, fuel, fuel collection and sourcing
mechanism, water and land utilization and complete cost and financial
analysis indicating proposed tariff for the life of the project. The developer
shall be required to deposit the facilitation charges at the time of approval
of DPR. PEDA shall examine the DPR and give comments/approval within
a period of 30 days and thereafter the developer shall submit a complete
application for seeking applicable clearances.

(3) All necessary and applicable clearances to be granted by State Govt.(viz.

Change of land use, Pollution Control, water, use of NRSE resources
,factories/ labour clearances etc.) required for a project would be
considered in a time bound manner (within a period of 60 days from the
date of submission of complete application along with requisite fee as per
the requirement of clearance issuing bodies / departments).
(4) The procedure for obtaining applicable clearances is as follows:-
a) The developer shall proceed ahead for filing the complete
applications on the required prescribed formats for obtaining all
necessary applicable clearances, forests, pollution control, land,
water, technical feasibility for evacuation of power etc. along with
the requisite applicable fees to the PEDA, which is the single
window clearance body for facilitating such NRSE projects.

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 b) PEDA along with the nodal officers of the concerned departments
will scrutinize the applications and get the shortcomings
completed and will forward the applications to the relevant
Departments for their consideration and concerned department
will convey their clearance or comments, if any within the
stipulated time period of 30 days from the date of forwarding the
completed application.Private developers shall be required to
fulfill all statutory / legal requirements with regard to project
reports/documents submission as per requirement of
approval/clearance issuing bodies/organizations under the Govt.
rules, regulations & Acts. Project developer shall be required to
arrange fuel and water linkages for the project.
c) In case, the concerned department fails to respond within the
stipulated time of 30 days, the cases shall be taken up in the
empowered committee. PEDA shall seek a meeting of the
Empowered Committee constituted as under for this purpose
within the next 15 days.
(5) The Empowered Committee of Administrative Secretaries for according
statutory and non- statutory clearances of NRSE projects, intra-
departmental issues, clearances of upcoming technology RE projects and
policy matters is constituted as under:-
I) Chief Secretary to Government of Punjab - Chairman
II) Secretary to Government of Punjab, - Member
Department of Science, Technology,
Environment and Non-Conventional Energy
III) Principal Secretary to Government of Punjab, - Member
Department of Finance

IV) Principal Secretary to Government of Punjab, - Member

Department of Power.
V) Principal Secretary to Government of Punjab, - Member
Department of Forests.
VI) Chairman cum MD, Punjab State Power - Member
Corporation Ltd.
VII) Chief Executive, Punjab Energy Development - Convener
Agency.

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 The Committee may co-opt other Administrative Secretaries/ State
Government officials as and when required (e.g. Principal Secretary,
Irrigation, Industries and Commerce, Local Bodies, Rural Development etc.)
in respect of projects/ Clearances in their respective jurisdiction. The
Committee will also oversee implementation of this Policy by the other
Departments/ Agencies.

(6) Representative(s) of the concerned department will participate in the

meeting of Empowered Committee to elaborate their
comments/observations, if any, for consideration of the committee. The
Secretariat of the Empowered Committee established in PEDA will bring up
the agenda items inclusive of the comments of the concerned Departments
if any along with its internal assessment/note on the subject. The
Empowered Committee would take a decision for according its clearances
within the stipulated period. The decision of the Empowered Committee
shall be final and binding on all concerned departments.

(7) Punjab Irrigation Department/PSPCL/LICENSEE will designate Officers

who will accord technical/feasibility clearances of drawings/technical
specifications within 30 days.

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 ANNEXURE-III

FISCAL AND TECHNICAL ASSISTANCE

With the objective to promote and develop NRSE programmes/ projects, the
State Government will provide fiscal and technical assistance for energy
recovery and power generation projects based on NRSE, to be set up in the
State to eligible power producers as under:-

1. Eligible Producers:

“Persons” generating electricity from non-conventional energy sources such as

small hydro projects upto 25MW, biomass combustion and gasification,
biomass and baggasse Co-generation process, Solar Photovoltaic, Solar
Thermal, Urban, Municipal and Industrial Waste, Wind Electric Generators,
biogas, gasification, Bio-methanation and upcoming NRSE technologies like
fuel cells/Hydrogen/Biofuel technologies of any capacity etc. will be eligible to
avail the assistance under the scheme. There will be no restriction on
generation capacity or supply of electricity to the State grid.

2. Grid Interfacing:

(i) Interfacing, including installation of transformers, panels, kiosks,

protection and metering equipment on LT/ HT side of the generating
station up to interconnection point and its subsequent maintenance
shall be undertaken by the power producer/plant owner. Punjab
State Power Corporation (PSPCL/LICENSEE) shall provide jumpers at
the interconnection point as defined in applicable regulations or tariff
order for evacuation of power to PSTCL/PSPCL/LICENSEE’s grid
substation.

(ii) If the power is proposed to be sold to PSPCL/LICENSEE on

Preferential tariff on long term basis, then the transmission line and
associated bay at PSPCL/LICENSEE grid substation along with ABT
compliant Check meters and associated equipment will be provided
by PSPCL/LICENSEE. In all other cases, the private developer shall
be required to lay its own transmission lines from the switchyard of
its generation facility to the PSPCL/LICENSEE/PSTCL grid sub-

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 station at its own cost in addition to all equipment required for
evacuation of power in its own generating facility switchyard. All
Associated equipment(s) at the PSPCL/LICENSEE grid substation
for accepting energy from the project including up gradation
required if any shall be provided by the PSPCL/LICENSEE including
Check meters and associated CTs/PTs.

(iii) PSPCL/LICENSEE approved main ABT meter having two

independent registering facilities, one for the export of power to the
grid and another for import from the grid will be installed on the HT
side of Generator transformer in the switch yard at interconnection
point by the producer. The meters and metering boxes will be sealed
by the PSPCL/LICENSEE/PSTCL. The energy meter(s) and
associated CTs/PTs etc. shall comply with the requirements of State
Grid Code and CEA guidelines.

(iv) Necessary current limiting devices will be installed in the generating

equipment by the producer. Producer shall generate matching
MVARs so that monthly average power factor does not exceed 0.90
or as specified from time to time.

3. Facilities by Punjab State Power/Transmission Corporation Limited:

i) Power Wheeling: The PSPCL/LICENSEE/PSTCL will undertake to

transmit/wheel the surplus power through its grid, and make it
available to the producer for captive use in the same company units
located in the State at a uniform wheeling charge of 2% of the energy
fed to the grid or as amended from time to time by PSERC,
irrespective of the distance from the generating station. Such
wheeling and/or transmission of power shall be governed by Open
Access Regulations /procedures.The captive power production and
consumption by beneficiaries i. e. same group companies shall meet
the requirements laid down in Electricity Rules 2005.Captive power
generators will be required to seek permission of PSPCL/PSERC for
laying of transmission line for taking power to destination of use in
Punjab.

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 (ii) Open Access: The NRSE Project developer as per entitlement under
the policy will also be allowed inter/intra state open access in
accordance with the open access regulations. This facility shall be
available only after refusal by State licensee to purchase the power on
preferential tariff under long term PPA.

4. Fiscal assistance by Govt. of Punjab:

(i) Wherever Irrigation land on canal banks is available, Punjab

Irrigation Department (PID) will transfer canal land to PEDA on
notional lease amount of Rs. 1.50 lac per annum per site. The
leased canal land will be subsequently transferred to the power
producers for development of Small Hydro Projects on Build,
Operate and Own basis for 38 (three years shall be considered as
construction period) years on the same terms and conditions set
forth by PID subject to further renewal on mutually agreed terms
and conditions. Ownership of such land will remain with PID. For
setting up MHP on canals, wherever the Irrigation Department
executes the Deposit work inside the canal on behalf of Private
Developer, no Departmental Charges shall be paid to PID by the
private developer however, supervision charges on actual basis shall
be payable subject to maximum 5% of the deposit work executed by
PID. In case the work is executed by the private developer on his
own, these works shall be done after approval of the detailed design
and drawings by PID under the Supervision of Punjab Irrigation
Department and the Supervision Charges to be borne by the Private
Developer shall be on actual basis subject to maximum 5% of the
total work executed by the developer inside the canal.

(ii) Wherever the required land belonging to local bodies/ panchayats is

available, the State would encourage the local bodies/ panchayats
to provide the land for NRSE projects on the terms and conditions
specified in para (i) above.

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(iii) The power producers setting up hydel projects will pay cess @ 1.5
paisa per unit of electricity generated for use of river/ canal water.

(iv) For canal based hydel projects, pondage of water upto Full Supply
Level in the upstream of canal shall be allowed for optimal
utilization of water resources.

(v) The NRSE Power Generation and consumption by generators

themselves as a captive unit from NRSE projects shall be fully
exempted from levy of Electricity Duty. 100% Electricity Duty for
power consumed from state licensee during construction and
testing of the project shall be waived.

(vi) Octroi on NRSE fuels to be used for energy generation and NRSE
devices/equipment/machinery for NRSE Power Projects shall be
fully exempted. Similarly Octroi on self-consumption of power by
captive power plants in the same premises or thru wheeling by open
access to same group companies shall also be exempted.

(vii) To promote usage /generation from NRSE, manufacturing & sale of

NRSE devices/systems, and equipments / machinery required for
NRSE Power Projects shall be exempted from Value Added Tax (VAT)
and any cess thereupon

(viii) 100% exemption from entry tax in respect of all supplies (including
capital goods, structure and raw materials) made for setting up and
trial operations of the projects.

(ix) 100% exemption from payment of fee and stamp duty for
registration/lease deed charges for the land required for the project.

(x) Agricultural land shall be allowed to be used for setting up of

Renewable Energy Power Projects in the state and no CLU, EDC/or
any other charges/fees for the same shall be payable.

(xi) Solar PV Power projects shall be exempt from obtaining any

NOC/consent under Pollution control laws from the PPCB.

(xii) All projects developed under this policy will be treated as industry in
terms of industrial policy of the state and all the incentives available

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 to new industrial projects will be applicable to Renewable power
projects set up under this policy as per industrial policy of the state,
for which approval shall be taken from the Department of Industries
and Commerce.

(xiii) Any benefits under any relevant policy such as Mega projects Policy
of State Government can be availed by the project covered under
this policy, subject to qualifications and approval of the concerned
departments, if any, and subject to conditions as may be prescribed
on case to case basis by the Concerned Administrative Department.

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 Annexure-IV

FINANCIAL QUALIFICATION CRITERIA FOR NRSE PROJECTS

1. Existing Companies: The company/entity desiring to setup NRSE projects

in State of Punjab must fulfill the following minimum financial criteria &
required to submit its proposal to PEDA for approval of the project.
Financial Criteria:
(i) Internal Resource Generation: Rs. 75 Lacs or equivalent US$* per MW
of the capacity, computed as five times the maximum internal resources
generated during any of the last five years business operations.

(ii) Net worth: Rs. 1.00 crore or equivalent US$* per MW of the capacity.
The computation shall be derived from any of the last three year’s
annual accounts.

(iii) Annual Turnover: Rs. 3.00 crore or equivalent US$* per MW of the
capacity. The computation shall be derived from any of the last three
year’s annual accounts.

* The US$-Indian Rupee Exchange rate shall be considered as the corresponding TT buying rate
specified by the State Bank of India seven days before the last date of submission of proposal to
PEDA

2. Newly Incorporated Companies:

For a newly incorporated Company/Consortium relying solely on its own

credentials, where the annual accounts have not been prepared, The Net
Worth requirement for such companies/consortium shall be Rs.2 Cr /
MW and should be met as on day not more than seven days prior to the
last date of submission of response to RFP by the bidding
Companies/Consortium. To demonstrate fulfillment of the criteria, the
Bidder shall submit a certificate from a Charted Accountant certifying
the availability of Net Worth on the date not more than seven days prior
to submission of response to RFP along with a certified copy of balance
sheet, profit & loss account, schedules and cash flow statement
supported with the Bank Statement.

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